No more subsidisation of east coast farmers ... Wa grain growers smiling :)
------------------------------------------------------ Farmers 'big winners' from wheat deregulation Posted 38 minutes ago
Friday 27 February 2009
A market analyst believes West Australian grain growers have been the biggest winners of deregulation of the wheat export market.
A new report shows the West Australian exporter, Co-Operative Bulk Handling, has taken a 30 per cent share of the market since the single desk system was scrapped last year.
The Australian Wheat Board has 17 per cent of the market.
A spokesman for Profarmer, Richard Koch, says it shows the previous system was inequitable and favoured growers on the east coast.
"From the time the export licences began to be issued, the spread of WA wheat prices sort of went from 10 to 20 dollars under east coast prices, to 10-20 dollars over east coast prices," he said.
"So that shows that the previous system was market distorting.
"Our prices relative to east-coast prices have gone from a discount to a premium and that move happened the week after export licences were issued.
"I don't think that was any coincidence there. It just shows that the previous wheat export market regulations were market distorting."
